West Texas Intermediate (WTI) crude oil price monthly 2020-2023

In October 2023, the price for one barrel of West Texas Intermediate (WTI) crude oil averaged 85.84 U.S. dollars. Rising energy costs related to the Russia-Ukraine war have increased the rate of inflation dramatically, which in turn reduced economic outlooks, with traders expecting diminished oil demand from large consumer markets.

WTI and other benchmark crudes

WTI is also known as "Texas light sweet", and is a grade of crude oil often used as a benchmark for oil pricing. It has an API gravity of around 39.6 and specific gravity of about 0.827, which, relative to other crude oils is considered “light,” hence the name. WTI also contains about 0.24 percent sulfur, making it a “sweet” crude oil. The price of WTI can be compared to the prices other of crude oils, i.e. UK Brent, the OPEC basket, and Dubai Fateh oil. WTI crude oil is the underlying commodity of the Chicago Mercantile Exchange’s oil futures contracts.

U.S. oil production and its influence on light oil prices

The price development of WTI crude oil relative to Brent crude oil has been influenced by variances in U.S. crude oil transportation and increased U.S. oil production. New transportation infrastructure became operational in early 2013, easing the movement of crude oil in the midcontinent and raising the price of WTI. Since then, U.S. refineries have increased production of crude oil to record levels, also raising the price of WTI. Meanwhile, expedited crude transport in the U.S. put downward pressure on Brent crude oil as domestic crude replaced some imported Brent crude. Between 2014 and 2016, UK Brent prices dropped rapidly, as was the case for all other crude oils.